Stolt Offshore S.A. Lowers 2002 Guidances

Thursday, September 26, 2002
Stolt Offshore S.A. announced that it expects full year 2002 earnings to be below previous guidance due to three factors: operational problems on projects, a timing delay on a major pipelay contract in Nigeria and a continuing weak market in the Gulf of Mexico. The company now anticipates the year-end results to be about breakeven. In addition, the Company announced that Bernard Vossier has requested to retire from his position as CEO effective immediately. Vossier will continue to serve as a member of the Board. The Board of Directors has commenced a search for a new CEO and appointed on an interim basis as CEO Niels G. Stolt-Nielsen, a member of the Board since 1999 and currently also CEO of Stolt Offshore's parent company, Stolt-Nielsen S.A. Operational problems have been experienced mainly on three projects. After completing the detailed engineering study for the installation and tie-in of steel catenary risers in a water depth of 1,245 meters next year on the Shell Bonga project in Nigeria, we are now forecasting higher than expected fabrication and installation costs. The company has also seen cost over-runs on the Burullus Scarab and Saffron project in Egypt. These are due to changes in project planning, materials supplied by the customer that were both late and defective and also difficulties with a nominated sub-contractor requiring additional engineering, management and supervision costs. On the Conoco CMS project in the North Sea we have experienced pipeline burial problems. A delay has occurred on the Offshore Gas Gathering System (OGGS) pipelay project for Shell in Nigeria, due to late delivery of key items by a third party outside of Stolt Offshore's control, which has a negative impact on key asset utilization. Earnings for this project previously expected in 2002 will now fall into the first half of 2003. The market in both the deep and shallow waters of the Gulf of Mexico has been much weaker than expected this year. The chance of an improvement in Q4 is now thought to be unlikely. In light of the poor results for Stolt Offshore, the Company's Board of Directors agreed to accept an offer from Stolt-Nielsen S.A., the company's parent, to exchange $40 million principal amount of outstanding debt owed by the Company to Stolt-Nielsen S.A. for 9.4 million Common shares at an exchange price of $4.25 per share. On completion of this transaction the total number of Common share equivalents outstanding will be 93.3 million.
Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Port Firm Fined £650,000 for Health, Safety Breach

A port operator has today (Monday 29 September) pleaded guilty to health and safety breaches, following the deaths of three crew members of a tug which capsized on the River Clyde in 2007.

IMO Takes Step Towards Electronic Certificates

In the future, the IMO member States should accept the use of electronic certificates. This is the request of the Facilitation Committee (FAL) and, hence, the road is paved for less paperwork,

K-Line to Plead Guilty to Price Fixing

Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices,

Finance

DOF Installer Sells Offshore Vessel

DOF Subsea AS subsidiary, DOF Installer ASA, reported the sale of one of its three sister ships, an anchor handling tug supply (AHTS) vessel, to an international buyer.

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

Odfjell Finalizes LPG/Ethylene Joint Venture Deal

Following Odfjell SE’s May 16, 2014 announcement declaring the signing of a definitive agreement to form a LPG/E shipping joint venture, Odfjell today announced

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1467 sec (7 req/sec)